European Investment Bank (EIB) has confirmed its first engagement in Tanzania in seven years, backing a €540 million investment by Tanzanian businesses. The funding has been supported by leading Tanzanian banks CRDB, NMB, and KCB-Tanzania, and will benefit companies nationwide. The EIB has committed €270 million to the initiative, which includes targeted support for €170 million investment in female-led companies across Tanzania and €100 million investment in blue economy firms.
The partnership between EIB and leading Tanzanian banks is aimed at supporting female-led companies and the blue economy. The funding includes innovative blended financing backed by the European Union, which will enable first-time borrowers to access finance and more companies to benefit from the scheme. The new initiative is expected to enhance access to finance by blue economy businesses and is expected to enable €100 million of new investment by both marine-based fishing, maritime transport, and tourism companies.
According to the European Investment Bank Vice President, Thomas Östros, the new business financing cooperation between EIB, CRDB, NMB, and KCB will unlock €540 million of new investment by Tanzanian businesses, including female-led companies and blue economy firms. The new financing confirmed at the EU-Tanzania Business Forum in Dar es Salaam demonstrates the close cooperation between Tanzania and European partners to ensure that Tanzanian companies can expand, create skilled jobs, and explore new business opportunities in the years ahead.
An estimated 75 percent of women-owned businesses in Tanzania do not have access to the finance they need due to challenges such as a lack of collateral or limited awareness of available financial products. The new EIB-backed business financing initiative includes targeted investment that will unlock €170 million of new investment in companies owned by women. The investment is compliant with the 2x Criteria, the global industry standard for gender lens investing.
The new initiative is aligned with the EU Global Gateway’s priorities, including improving access to finance, with a particular focus on women-owned or managed businesses and enterprises. Implementation of the new initiative is expected to be enhanced by sharing technical and financial best practices, gender financing, and blue economy investment expertise through technical assistance programs and other financial support backed by the European Union through the European Commission’s Africa Investment Platform.